Further, 64% of advisors expect Bitcoin to be bullish over the next five years.

The Bitwise / ETF Trends 2020 Benchmark Survey of Financial Advisor Attitudes Toward Cryptoassets gives useful insight into what advisors are thinking about Bitcoin and cryptos going into 2020. ETFs and passive investing being the flavor of the season it’s easy to conclude that a Bitcoin ETF could prove immensely popular. Note that financial advisors manage roughly half of all wealth in America.

Key findings of the report

The survey elicited 415 responses from financial advisors.

• Advisors allocating to crypto assets would double from 6% to 13% in 2020
• More than half (54%) of advisors said the most compelling motivation for holding cryptos was low/uncorrelated returns with other assets
• On the other hand, 56% thought regulatory concerns were the main stumbling block for allocating funds to cryptos, followed by 43% who gave a thumbs down because of bitcoin’s volatility, and 39% due to the lack of vehicles such as ETFs or mutual funds
• Client interest in crypto assets continues unabated. 76% of advisors said they received inquiries on crypto from clients in 2019
• A very large section of advisors (72%) think clients are already investing in crypto outside of advisory portfolios
• Bitcoin will appreciate over the next five years think 64% of advisors. In fact, 35% expect the bitcoin price to double by 2024
• Further, about 57% of advisors said they would fund allocations to crypto assets out of the “alternatives” section of portfolios. Only 12% voted for equities and 4% for fixed income as the source for crypto investments

“Advisors are continuing to look at the space, seeking to build their understanding, and are increasingly finding ways to serve their clients’ interests and activity in this new asset class,” the report concluded.

Further, “Crypto continues to be top-of-mind for advisors searching out new and uncorrelated sources of return,” said Tom Lydon, founder and CEO of ETF Trends. “The survey results clearly indicate a growing interest in crypto from advisors and their clients alike.”

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